Press release - Ad hoc announcement pursuant to Art. 53 LR

LEM announces results for H1 2021/22: strong momentum
despite supply chain challenges
Geneva, Switzerland, 08 November 2021 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for industry and automotive applications, announces first half results for 2021/22(April-September) compared to 2020/21:•Sales increased by 27.5% to CHF 183.7 million (CHF 144.1 million); at constant exchange rates,
sales improved by 25.4%•The company benefits from a diverse global distribution of sales, with China and Europe further
increasing their share:– China CHF 69.9m (38.1% of total)– Europe CHF 57.2m (31.1% of total)– North America CHF 16.9m (9.2% of total)– Rest of World CHF 39.7m (21.6% of total)•

Bookings more than doubled to CHF 300.2 million (CHF135.3 million)•

R&D up by 17.3% to CHF 15.2 million (CHF 13.0 million), but declined to 8.3% of sales•

EBIT improved by 48.6% to CHF 42.1 million (CHF 28.3 million); the EBIT margin increased to22.9% (19.7%)•Net profit for the period rose by 50.4% to CHF 35.2 million (CHF 23.4 million)

Frank Rehfeld, Chief Executive Officer, said: “We are pleased to report our strong start to the year
has continued through the second quarter despite the supply chain challenges, benefitting from thediversity of our business across sectors and regions. The return of demand and investment confidence
amongst our customers is particularly evident in our Drives and Renewable Energy businesses, thelatter boosted by the rollout of our innovative DC meter product with the new electric vehicle charging
infrastructure across Europe. This pace of electrification is driving the good performance of ourAutomotive segment.
However, our sales performance could actually have been better, as we continue to be hampered bysupply chain bottlenecks, which are not only related to the well reported issues of semiconductors.
These challenges are reflected in our global bookings which improved for the 5th consecutive quarter,with customers firmly committing to orders over longer time horizons.”
Andrea Borla, Chief Financial Officer, remarked: “Our strong EBIT performance is a result of thetop-line sales growth and continued vigilance over costs, while we still are investing significantly in
R&D. However, caution must be exercised in extrapolating our first half growth rates to the future, as
we know that supply chain issues will impact our business for several quarters to come, while tradedisputes and geopolitical tensions remain as headwinds for investment confidence.”

LEM Holding SA

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Industry segment: strong performance reflects investment and demandH1 sales in the Industry segment totaled CHF 143.6 million, up 27.5%. At constant exchange rates,
sales improved by 25.4%. All our businesses and regions continue to benefit from the return ofinvestment confidence and customer demand. In particular our Drives business indicates strong
investment in the production of tooling machines and end-consumer products, such as heat pumps.
Renewable Energy is a more variable business and continues to grow due to increasing
governmental policies for sustainable power generation. The infrastructure investment for e-mobility
is driving the successful rollout of our new DC meter. With the demand in the test and measurement
sector for batteries and EVs, sales of our High Precision sensors are also doing well.
Europe (+34.4%), China (+20.3%) and Rest of World (+32.7%) benefited from the jump in demandacross Drives, Renewables, and High Precision. Even Traction, which saw train operators
postponing their orders during the first pandemic wave, is slowly recovering. Europe has recoveredfrom its lowest point last year and has regained its status as our largest market. North America(+20.9%) benefited from the demand for Drives and also for Renewables. Global orders nearlydoubled for the half year, as lead times continue to be affected by supply chain bottlenecks, and werequested customers to firmly commit to orders over longer time horizons.
2021/222020/21

65.4

46.8

Renewable
EnergyTractionHigh precision

52.1

41.4

21.4
4.6

20.8
3.7

Total Industry

143.6

112.6

in CHF millions

Businesses
DrivesChange Comments+39.8% • Growth in multiple industrial andconsumer sectors• Manufacturing capacity investment
in semiconductors+26.1% • China solar driven by infrastructure• Europe boosted by DC meter+3.1% • Rail traffic first signs of recovery+25.4% • Demand for test and measurement
products picked up+27.5%

Automotive segment: EV momentum continues to be impacted by supply chain issues
H1 sales in the Automotive segment totaled CHF 40.1 million, an increase of 27.3%. At constantexchange rates, sales improved by 25.4% compared to H1 last year during the pandemic shutdowns.
Our products have been designed in for several EVs which entered production in 2020 and our sales
this half year would have been even stronger, except for the continued supply chain issues. These
are affecting semiconductors and many other components in our Battery Management business andwill also impact our portfolio going forward. Our bookings nearly tripled compared with H1 2020/21,
reflecting the strong fundamental demand for EV solutions and our customers’ commitments toorders over longer time horizons. Various forecasts suggest cuts to global vehicle output in 2021, but
EVs should maintain their growth in market share.
Our largest market China grew impressively by 58.7%, driven by consumer appetite for EVs and thelaunch of several new vehicles. The pace of electrifications continues to grow in Europe (+28.4%), as
manufacturers (OEMs) produced more EVs to achieve their CO 2 emissions targets. North America
showed a positive growth (+12.7%) compared with H1 last year, but it is still transitioning to green
cars at a slower pace than other regions. Rest of World declined slightly by 1.0% due to shortages ofsemiconductors, this general lower growth rate reflecting a higher sales base, as these markets had
been less impacted by the pandemic in H1 2020/21.

LEM Holding SA

Page 2/62021/22

2020/21Businesses
Battery Management

20.7

18.9

Motor Control
Charging Systems

17.5
1.9

11.3
1.3

Total Automotive

40.1

31.5

in CHF millions

Change Comments+9.5% • Supply chain bottlenecks• Significant drop in US 12V demand+54.8% • Strong demand spurred by EV cars
+49.0% • Continued momentum for battery
electric and hybrid vehicles+27.3%

Improved profitability
Gross profit for the half year rose by 30.6% to CHF 85.6 million (CHF 65.5 million), principally due tohigher sales volumes compared to H1 last year. The gross margin improved by 110 basis points to46.6%, supported by various efficiency programs.
We remain vigilant with overheads, so while SG&A costs were up by 12.0% to CHF 28.4 million (CHF25.3 million) to support the extra market demand compared with last year, they declined to 15.4% ofsales (17.6%).
We continue with our long-term investment in future applications with R&D up in absolute terms by
17.3% to CHF 15.2 million (CHF 13.0 million), although this decreased to 8.3% of sales (9.0%).
EBIT for this half year improved by 48.6% to CHF 42.1 million (CHF 28.3 million), mainly due to theincrease in revenue. Consequently, our EBIT margin rose by 320 basis points to 22.9% (19.7%).
Free cash flow was lower at CHF 5.1 million (CHF 7.8 million), impacted by the non-recurrent tax
payment of CHF 26.6 million following the IP transfer completed in March 2020.
We posted a net profit for the half year of CHF 35.2 million, up 50.4% from CHF 23.4 million last year,
reflecting the improved EBIT. The net profit margin was 19.2% compared with 16.2% in the same
period last year.
Outlook
Our businesses have demonstrated much resilience in coming through the worst impacts of thepandemic, and we continue to benefit from the fundamental drivers of electrification, renewable energy
and mobility. However, we still face headwinds from shortages and supply chain issues for components
such as semiconductors, and from the ramifications of ongoing trade disputes. For the full financial
year 2021/22, the company currently expects sales in the range of CHF 340 - 350 million (CHF 301.0
million for 2020/21), with an EBIT margin above 20%.

LEM Holding SA

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Conference call and webcast
Frank Rehfeld, CEO, and Andrea Borla, CFO, will provide a presentation of the half year 2021/22
results today at 10:00 CET at a media and investor community webcast and conference call.
Listen to live webcast
https://78449.choruscall.com/dataconf/productusers/lem/mediaframe/47048/indexl.html
The press release, Financial Half Year Report, webcast slides, and the link to the webcast are available
in the Investor Relations section of the LEM website (www.lem.com/en/investors), where the recorded
webcast will later also be archived.
Dial-In Numbers
Switzerland & Europe:
UK:
USA:
Other countries:+41 (0)58 310 50 00+44 (0) 207 107 06 13+1 (1) 631 570 56 13
https://media.choruscall.ch/documents/Attended_DI_numbers.pdf

Financial calendar
The financial year runs from 1 April to 31 March
4 February 2022
Third-quarter results 2021/22
24 May 2022
Full-year results 2021/22
30 June 2022
Annual General Meeting of Shareholders for the financial year 2021/22
5 July 2022
Dividend ex-date
7 July 2022
Dividend payment date
LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy andmobility, ensuring that our customers’ systems are optimized, reliable and safe.
Our 1,500 people in over 15 countries transform technology potential into powerful answers. We
develop and recruit the best global talent, working at the forefront of mega trends such as renewableenergy, mobility, automation and digitization.
With innovative electrical solutions, we are helping our customers and society accelerate the transition
to a sustainable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com
Contact: Investment community
Andrea Borla, Chief Financial Officer
Phone: +41 22 706 1250
Email: investor@lem.com
Contact: Media
Cabinet Privé de Conseils s.a. (CPC)
Nick Miles, miles@cpc-pr.com, mobile +41 79 678 76 26
Michael Füglister, fuglister@cpc-pr.com, mobile +41 78 839 07 62

LEM Holding SA

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Appendix
Consolidated income statement
April to September
In CHF thousands

2021/222020/21

ChangeSales

183’665

144’078+27.5%

Cost of goods sold(98’066)(78’557)

Gross margin

85’60065’521Gross margin (in %)

46.6%

45.5%

Sales expense(14’109)(12’823)

Administration expense(14’251)(12’495)

Research & development expense(15’216)(12’972)

Other income

90

1’113

EBIT

42’11428’344

EBIT margin (in %)

22.9%

19.7%

Financial expense

(226)

(186)

Financial income

177

85

Foreign exchange effect

(329)

109

Profit before taxes

41’73628’351

Income taxes(6’551)(4’955)

Net profit of the period

35’18523’395

Net profit margin (in %)

19.2%

16.2%

LEM Holding SA+30.6%+48.6%+47.2%+50.4%

Page 5/6

Key Figures
2021/22

In CHF millions

Orders received
Industry

2020/21

Change

Q1

Q2

Q1

Q2

Q3

Q4

FY

Q2 - Q2

6M - 6M

110.8

101.3

47.5

55.7

63.9

100.8

267.8

+82.0%+105.6%

Q3

Q4

FY

Automotive

35.7

52.4

12.0

20.2

23.1

38.9

94.2

+159.6%+173.7%

Total LEM

146.4

153.7

59.5

75.9

87.0

139.7

362.0

+102.7%+121.8%
6M - 6M

Book-to-bill ratio

Q1

Q2

Q1

Q2

Q3

Q4

FY

Q2 - Q2

Industry

1.51

1.440.791.06

1.21

1.68

1.19+36.4%+61.2%

Automotive

1.78

2.620.83

1.19

1.08

1.70

1.24+120.6%+115.0%Total LEM

1.57

1.70

0.80

1.09

1.17

1.69

1.20+56.4%+74.0%Q3

Q4

FYSales

Q1

Q2

Q1

Q2

Q3

Q4

FY

Q2 - Q2

6M - 6M

Industry

73.2

70.4

59.8

52.8

52.8

59.9

225.2

+33.4%+27.5%

Automotive

20.1

20.0

14.5

17.0

21.3

22.9

75.7

+17.7%+27.3%

Total LEM

93.3

90.4

74.3

69.8

74.1

82.8

301.0

+29.6%+27.5%Q3

Q4

FYEBITQ1Q2

Q1Q2Q3Q4FY

Q2 - Q2

6M - 6M

Industry

19.2

18.5

12.3

12.1

11.4

13.6

49.4+52.0%+54.3%

Automotive

2.0

2.4

1.0

2.9

3.9

3.6

11.5

-16.2%+13.1%

Total LEM

21.2

20.9

13.3

15.0

15.3

17.3

60.9

+38.9%+48.6%Net profit of the period

Q1

Q2

Total LEM

17.3

17.9

LEM Holding SA

Q3

Q3

Q4

Q4

FY

FY

Q1

Q2

Q3

Q4

FY

Q2 - Q2

6M - 6M

11.1

12.3

12.6

19.6

55.6

+45.9%+50.4%

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